Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
! Z1 ]0 E1 e* Z7 ?! Ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
0 m3 s- M/ b9 gcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
* f0 H: H/ F! G3 R3 j( Lmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
* \& c, I- n( j$ N; d8 y# b" O& A5 BA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
6 i' Q' z# O( b6 p

There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

& W4 ~# Y. x( V! Z- ?( A
$ C7 d9 q1 D4 y- ?" n1. New oil has been found in Canada, Montana, North & South Dakota and
1 e* F; x: w) y1 C' M/ P% W6 zin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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  D9 Y8 ^& W9 t+ w
( |' F+ \6 b4 a4 ~! Q! D+ L: R( d1 z2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


' R& G% ]! d; J: `, m2 U3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


3 g5 S; G" ?4 i: p4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
0 h! z6 z3 a4 u7 x4 |# s: iracing to produce bio fuels.
9 |0 b) ]% ]$ e8 x+ m

5. Virtually every restaurant in the US and all food processing plants
: l( G( W- E3 [+ e5 Tare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
+ @2 _$ d/ N; f" Y' ^2 Dto bio-diesel producers. One pork processing plant in Oklahoma is
# ]! N7 K* G3 |9 Y4 t5 Kproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
1 C* ?, d5 c5 [7 O/ wconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
7 g: q! i" {# `3 twill replace oil.
3 I( R1 b) v) d( `% N8 i2 p
! Z$ T. Y9 Y9 {
2 ~7 P2 t5 I' M$ H% x' ]& o7. Every company in any form of transportaion business is replacing
) b! I' ]( r7 f/ I0 D8 P. p$ tolder equipment such as trucks, airplanes, train engines, ships, etc.
$ L4 d' J7 H8 q3 E- ^with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
" J( v  S1 ^! X; a. ufuel is cleaner and performs better than jet fuel.
2 y8 j0 B$ Y( ]

& F# x6 j$ |3 c9 X2 T8 W& P) {- V# Z9 m+ p2 E8. Cities and counties throughout the US are selling the rights to
& j7 y) w9 d* O& ?7 Jcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


" b4 L$ A4 Q8 j( G10. Solar, wind and ocean energy is displacing oil as an energy
/ U7 @  t& w; M7 I2 h: c2 csource. Three new wind turbines are being erected every day in the US.
6 ?8 G) H4 c& J( H6 c/ {+ U  C

Each of the above by itself will not make a large difference in the
3 {7 s$ }5 N, s+ K* S- w9 P- t5 Jprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
: ~# U/ P$ P- M, u, Fto control oil prices.
3 L& [3 C" U. V& v; U5 [
# z$ A) E* x: ~* ?2 y- `
With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
5 n6 K' ^, ]$ WIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only